Oil firms, gov’t assure stable fuel supply during disasters

MANILA, Philippines–Oil companies have partnered with state corporations to ensure a stable supply of fuel in Metro Manila in the event of disasters.

The Philippine Institute of Petroleum (PIP), composed of major oil companies, signed a memorandum of agreement with the Department of Energy (DOE), the National Disaster Risk Reduction and Management Council (NDRRMC), and the Metro Manila Disaster Risk Reduction and Management Council (MMDRRMC) that set a framework for responding to disasters in the scale of Super Typhoon “Yolanda.”

The agreement identifies key areas of cooperation and develops a framework to ensure fuel supply in case of emergencies and calamities such as earthquakes, typhoons, floods, fire and spills. Under the agreement, the DOE will continue to serve as the primary contact point between the government and the petroleum industry, and lead the oil industry’s response to disasters.

NDRRMC Executive Director retired Navy Chief Alexander Pama said the cooperation includes development of a communications protocol and disaster management plan, as well as the sharing of depot resources among oil companies.

Thus, oil firms can call upon each other and on DOE as well as NDRRMC and MMDRRMC experts for help when they encounter logistics and other concerns that could disrupt fuel supply in times of disaster.

Energy Undersecretary Zenaida Monsada said that during Yolanda last year, among the primary causes of disrupted fuel supply in calamity areas was lack of access to roads due to debris and security concerns due to looting. The agreement institutionalizes measures to improve the oil industry’s response to such events and ensure supply for consumers who need to transport people, animals and relief goods.

Supply of fuel products

The MOA (memorandum of agreement) was signed at the Industry Emergency Response (Iero) Cooperation event. Iero is a regular event conducted by PIP to enhance capabilities in disaster preparedness and response, workplace safety and environmental management, among others.

The PIP, in coordination with the DOE, will also prioritize the supply of fuel products to be made available and fully functional retail stations nearest the emergency response staging areas identified by the MMDRRMC or the NDRRMC.

The MMDRRMC, meanwhile, as well as the local government units of Metro Manila, shall activate or reestablish communications and coordination among key organizations during major emergencies and disasters.

Hampered growth

Metro Manila, with a population of 35 million, is composed of 15 cities and one municipality. It is one of the fast-growing urban areas in the world. It is now one of the top real estate markets in the Asia-Pacific, driven by the increasing number of muntilational companies establishing their outsourced services. This growth, however, can be easily hampered by the lack of preparedness in the event of natural or man-made disasters.

A recent survey conducted by reinsurance firm Swiss Re showed that Metro Manila, frequently visited by typhoons and sitting on a major fault line, is among the riskiest areas in terms of natural calamities.

PIP members include Chevron Philippines Inc., Isla Gas, Pilipinas Shell Petroleum Corp., PTT Philippines Corp., Total (Philippines) Corp. and Petron Corp.